1. In the case of a regular client, the exporter quotes prices and terms of trade to the buyer via e-mail. In the case of a new buyer, the exporter first sends the sales catalogue and product designs to the buyer, after which prices are quoted and a sample of the requested tyre is sent. 2. When the buyer has decided to make a purchase, a Purchase Order (PO) is sent by the buyer (importer) to the exporter via email. The exporter raises a Proforma Invoice (PI) against the PO. The buyer is required to send a signed copy of the PI (by fax or post) if the method of payment is via telegraphic transfer. However, if the payment is made through Letter of Credit, this is not requested.
1. The CUSDEC is sent to customs by the exporter through the EDI, and the necessary payment (assessment charge of LKR 250) is deducted from the current account that the company has with the Customs Department. 2. Then an entry paid message is sent to the company (via email), with the customs declaration number. A printout of the CUSDEC and copies are then made.
1. The exporter makes the initial reservation verbally over the telephone, which is followed by a formal booking request. The Shipping Note and a Release Order (RO) are issued by the shipping line. 2. The exporter sends the Shipping Note and the RO to the inland transport agent to collect the container from the yard. Then the agent collects the container from the yard and brings it to the warehouse after which loading is carried out.
1. Based on the invoice value, the tyre exporters apply for marine insurance by consignment. They apply for insurance by filling in an insurance declaration form. 2. A hard copy of the insurance policy is sent to the exporter by the insurance company. The insurance cover can be obtained in about two hours.
1. Before the container reaches the port, the Sri Lanka Ports Authority (SLPA) charges have to be paid by filling an SLPA payment form. 2. When the container reaches the port, the documents that need to be presented are the Cargo Dispatch Note (about six copies), Shipping Note, Commercial Invoice and the security copy of the CUSDEC. 3. The security/ navy checkpoint at the first gate opens the container and checks it, then seals it in the presence of the exporter (or representative). 4. The container then goes through the Passing Office/export office run by the Sri Lanka Customs Department. They check the seals, the CUSDEC, whether sampling has been carried out, the payments made and the Boat Note for the last time. 5. When the Boat Note has been approved, the container is taken for loading. The Cargo Dispatch Note has is handed over at this point.
1. The exporter takes to the Customs Department the hard copies of the CUSDEC and the other supporting documents, the CI, Shipping Note and the Packing List (optional). 2. The Customs Department then retrieves the declaration information and makes a printout of the Assessment Note. 3. The Ledger Officer, after examining the Assessment Note, deducts the payments made by the exporter manually from Custom’s records, after which the exporter gets the document signed by the required officers at the Customs Department. 4. At this point the Customs Department decides whether the consignment is chosen for a panel examination or not and approves the CUSDEC.
1. - Fumigation Certificate For tyre exporting companies that are required to submit this certificate, the fumigation is carried out in-house by an authorized fumigation company. The fumigation company must be informed a day before the required day. The approximate cost of fumigation of one container is between LKR 2745 and LKR 3500. - Country of Origin Certificate The same procedure is followed as for exports of tea.
1. Before the payments are made, the exporter has to send to the importer the CI, Packing List, Fumigation Certificate, B/L, Insurance policy and the COO. For exports to India, the most common form of payment is through a Letter of Credit (L/C). Once the container reaches the importer’s destination, the importer’s bank makes the payment to the exporter’s bank.
1. Regular clientsThese clients ask for tea for a particular price and ask the exporters to buy tea from theauction based on that price. Although not mandatory, sometimes the tea exporter sends samples of tea two weeks before the auction with a price indication. The clients evaluate the samples and offer bids. If the price is below the bid price, the exporter buys the tea for their client. 2. Other clients For these clients, the exporter sends tea samples and a general quotation of price on a weekly basis. 3. The order is placed if the payment terms are acceptable to both parties. Then the Proforma Invoice or the Sales Contract is sent by the exporter to the buyer (by fax or email). 4. The buyer countersigns and returns it (via email). The shipment is prepared after this initial process of reaching an agreement.
1. When the CUSDEC is sent to the Customs Department by the Tea Board, the necessary payments (cess LKR 4 per kg, medical cess of LKR 0.35 and assessment charge of LKR 250, which is about USD 2.5) are taken from the current account that the companies have with the Customs Department. 2. Then an entry paid message is sent to the company electronically via email with the customs declaration number. It is only after the payment process is completed that a printout of the CUSDEC can be obtained. 3. After a printout with the customs declaration sequence number is made, the necessary number of copies are made (four copies: Warrant copy, Statistical copy, Security copy and the Party copy).
1. Up to 10 kilograms (kg) of tea can be sent out of Sri Lanka, as a sample, without lodging a CUSDEC or acquiring a Tea Export Permit. 2. All other tea exports need an Export Permit from the Tea Board. In order to do this, the exporters need to first send a Blend Sheet to the Tea Board (electronically). A Blend Sheet is a list of all the teas that constitute a specific shipment and the document contains details such as date of sale, lot number, broker’s code, invoice number, garden number, grade, weight, price and value. The system automatically generates a lodgement number almost immediately. 3. Once this is received, the exporter prepares the CUSDEC, which includes the lodgement number of the Blend Sheet application and submits the CUSDEC to the Tea Board (electronically). 4. The Tea Board then checks and compares the Blend Sheet and the CUSDEC and informs the exporter (electronically) whether the consignment has been selected for random sampling or not. 5. After that, the Tea Board sends the CUSDEC to the Customs Department (electronically) with the Export Permit for the consignment of tea. 6. In the event a consignment is selected for random sampling, a Tea Board sampling officer will visit the warehouse to take a sample and send it to the Tea Board laboratory for testing. In the CUSDEC there is a space to specify when and where the sampling can be carried out, if selected for sampling. 7. The tea company then calls the Tea Board to find out if the testing has been completed. When it is, the tea exporter takes the CUSDEC and gets a “shipment authorized” seal from the Tea Board, which allows them to continue with the shipment. 8. This sampling/testing process can be completed in about 24 hours. A sampling officer usually comes the day after the request is made and the approval can be acquired the same evening.
1. One exporter makes the initial reservation verbally, followed by a formal booking request. 2. The shipping line then issues a Shipping Note and a Release Order (RO). 3. The exporter sends the Shipping Note along with the RO to the inland transport agent to collect the container from the yard. The RO is usually faxed. 4. Then the agent collects the container from yard and brings it to the warehouse after which loading is carried out. Since the RO has the customs entry number, no other approval is needed to transport the container from the yard to the warehouse/factory and then to the port. Some companies opt to use an intra-system in making its shipping line bookings.
1. Before the container reaches the port, the Sri Lanka Ports Authority (SLPA) charges have to be paid by filling an SLPA payment form. The Sri Lanka Ports Authority calculates the charges based on the Shipping Note. The exporter (or agent) presents the Shipping Note, the Cargo Dispatch Note (CDN) and a copy of the CUSDEC as supporting documents. 2. When the container reaches the port, the documents that need to be presented are the Cargo Dispatch Note (about six copies), Shipping Note, Commercial Invoice and the security copy of the CUSDEC. 3. The security/ navy checkpoint at the first gate opens the container and checks it, then seals it in the presence of the exporter (or representative). 4. The container then goes through the Passing Office/export office run by the Sri Lanka Customs Department. They check the seals, the CUSDEC, whether sampling has been carried out, the payments made and the Boat Note for the last time. 5. When the Boat Note has been approved, the container is taken for loading. The Cargo Dispatch Note has is handed over at this point. 6. Security and other checks take an average time of between 30 minutes and three hours depending on the number of export consignments coming in on a particular day.
1. The exporter then takes the CUSDEC Invoice (two copies), the Shipping Note and the Packing List (optional) to the Customs Department (manually) to get it processed. 2. The Customs Department retrieves the declaration information and makes a printout of the Assessment Note, which has a summary of the consignment details, including the payments made. 3. The exporter then proceeds to the Ledger Officer with the Assessment Note and gets the payment amount deducted manually from the Custom Department’s records. 4. After deducting the amount and checking the documents, the Ledger Officer and the OIC sign the documents. 5. They place the Tea Board “Approval Granted” seal or “Selected for Sampling Seal” on the documents (based on the Tea Board decision taken earlier). A final signature is placed by the Superintendent of Customs on behalf of the DGC. At this point, customs decides whether the consignment is chosen for a panel examination or not, and approves the CUSDEC. 6. If selected for panel examination, a request has to be made to customs to hold a panel examination indicating the time and date of the shipment. The amount that needs to be paid to customs differs depending on the distance to the warehouse. 7. An officer is appointed by customs and visits the exporter’s warehouse and conducts the panel examination. After the panel examination is conducted, the examiner seals the container and the seal cannot be broken until it reaches the port. According to the interviewed companies, the cost for a panel examination is around LKR 2,000 for a 40 foot container. 8. Apart from this payment, the exporter has to bear the cost of providing the officer with transport to the warehouse and back. The examination is usually carried out the same day a request is made.
1. Before the payments are made, the exporter has to send the importer the Commercial Invoice, Packing List, Phytosanitary Certificate, GSP form (for bulk tea only), Bill of Lading, insurance policy and Certificate of Origin. Although there are several ways of making payments, such as Letter of Credit, Cash Against Goods, with Japan the most common form of payment is via Telegraphic Transfer (TT) based on trust. With TT, the payment is transferred directly to the exporter’s account via the importer’s bank.
-Selecting a supplier of textiles (fabric) is usually based on the ultimate (end) buyer’s nomination. Based on this nomination, the importer contacts the supplier, after which the supplier quotes the terms of reference (TOR) and prices
For Board of Investment Members 1.If the importer agrees with prices and TOR, the supplier raises a Proforma Invoice and sends it to the importer via email. 2.The importer then prepares a Purchase Order and sends it to the exporter. Payment related steps are carried out henceforth by opening an L/C. 3.If the importer does not agree with the quoted prices and TOR, then re-negotiations take place between the ultimate buyer, the importer and the supplier until all three reach a settlement. For Non-Board of Investment Members 1.For non-BOI importers, the process is different. Once a buyer confirms a product, Product A, for example, the buyer sends a sample of Product A to a lab in Sri Lanka to get all the technical information. The samples, together with the technical information, are sent by courier to the fabric manufacturer to match the sample. 2.The fabric manufacturer then sends the relevant fabric to a local lab in India to test whether the specifications match. 3.The test report, together with the sample, is sent to Sri Lanka and the sample is again sent to a Sri Lankan laboratory to get technical confirmation. 3.The reports and the samples are then sent to the buyer who placed the order, in order to confirm that they can go ahead buying the textile. 4.After this, they request from the Indian supplier between 10 and 15 metres of the fabric, and the supplier (exporter) makes a sample of Product A and sends it to a lab (in Sri Lanka) to be tested (wear test). 5.Then the Purchase Order is sent to the Indian counterpart, outlining all the technical requirements. 6. A copy of the PO is obtained from the supplier, for original signatures, and the documents are couriered. 7. Then the supplier sends a Proforma Invoice stating their requirements (payment conditions, etc.), which is signed and returned to the supplier. 8. Once an L/C is opened, the shipment is prepared.
-Receive documents from exporter
1. Two sets of documents are sent by the supplier from India: a) original set of documents to the bank, b) copy of the set of documents to the buyer. These documents include: 1) Commercial Invoice, 2) Packing list, 3) Bill of Lading, 4) Inspection Certificate (by the appointed body in India), 5) GSP certificate, 6) Insurance Certificate, and 7) Certificate of Origin. 2.If the documents comply with the requirements, then the payment is released when the documents are collected.
-Receive Documents from Exporter: Commercial Invoice, Bill of Landing, Packing List, Certificate or Origin
1. Collect the documents required for importing textiles : Two sets of documents are sent by the supplier from India: - original set of documents - copy of the set of documents to the buyer. These documents include: -Commercial Invoice -Packing list -Bill of Lading - Inspection Certificate (by the appointed body in India) -GSP certificate - Insurance Certificate -Certificate of Origin. If the documents comply with the requirements, then the payment is released when the documents are collected. 2.Obtain cargo insurance. If it is Free On Board (FOB) cargo, the BOI-approved importer applies for bulk insurance weekly with the number of containers. The Commercial Invoices as well as the CUSDECs have to be provided as supporting documents. The insurance company then prepares and issues the insurance policy, which is collected by the importer or is delivered by the insurance company to the importer. Insurance premium payments are paid monthly by the importer. If it is CIF, the supplier bears the insurance cost. For non-BOI companies, insurance cover is obtained on consignment basis by providing the Proforma Invoice. 3.Arrange transport After obtaining the DO from the Shipping Agent, the importer reserves a trailer by submitting a Booking Request and the DO. The inland hcompany acknowledges the booking request and issues a Release Order. The trailer is then sent to the port directly with the Gate Pass provided by the importer. The trailer driver gives the Gate Pass to the crane operator to get the container out of the vessel and loads it onto the trailer to deliver it to the clearance point at the BOI. Once the consignment is released, it is moved to the warehouse.
The CUSDEC is lodged through the EDI together with the supporting documents (CI, B/L and Packing List)
1. The Customs Department verifies submitted information and returns the CUSDEC to the importer with the CUSDEC Declaration Number. 2. In the meantime, the payment is reduced (electronically) from the Current Account the importer holds at the Customs Department. 3. The importer makes a printout of the CUSDEC and makes the relevant number of copies (six copies). 4. BOI-approved companies take the CUSDEC and copies to the clearance department of the BOI. 5. Non-BOI companies go to the Sri Lanka customs office with the same set of documents.
1. The BOI-approved importers provide a hard copy of the CUSDEC with the declaration number received from the electronic system to the customs office located at the BOI. The non-BOI importer provides the same documentation to the customs office in Colombo 2. The customs first issues an Assessment Note, which is a summary of the shipment information, payments that need to be made, etc 3. The importer then submits the other supporting documents, together with the CUSDEC, and customs verifies the documents and decides whether to select for verification/examination or not 4. If the consignment is selected for examination, the CUSDEC is returned to the importer with the “Panel Examination Required” seal on it 5. Once the importer submits the panel examination request form to customs and makes the payment, two customs officers examine the consignment and, if the declared goods tally with the packing list and the Commercial Invoice, the declaration is returned with a “Panel Examination Completed” seal on it
1. After obtaining the DO from the Shipping Agent, the importer reserves a trailer by submitting a Booking Request and the DO. 2. The inland hcompany acknowledges the booking request and issues a Release Order. 3. The trailer is then sent to the port directly with the Gate Pass provided by the importer. 4. The trailer driver gives the Gate Pass to the crane operator to get the container out of the vessel and loads it onto the trailer to deliver it to the clearance point at the BOI. 5. Once the consignment is released, it is moved to the warehouse.
Confirmation of purchase and receipt of the Proforma Invoice
1. Following the confirmation of purchase and receipt of the Proforma Invoice, the importer raises an L/C. The L/C has to be raised on or before the shipment date. 2. The importer needs to submit an L/C application form, which can be obtained from the bank. When raising the L/C, the Proforma Invoice is submitted as the supporting document. 3. Once the L/C is raised and sent to the supplier, the supplier prepares the documents that are required to be sent to the importer in order for the importer to clear the goods. 4. These documents are given to the supplier’s bank by the supplier. The bank verifies the documents and, if they meet the conditions in the L/C, the bank forwards the documents to the importer’s bank. 5. The importer’s bank verifies the forwarded documents and, if they meet the L/C conditions, transfers the payment from the importer’s account to the supplier’s bank. 6. The importer then collects the documents from the bank and the supplier receives the payment.
-The supplier sends the buyer stock lists with Cost, Insurance and Freight (CIF) prices and with details such as model, colour, options, year and month of first registration in Japan, via e-mail or sometimes the importer obtains the list online (through the supplier’s website).
1. When the car importer has a potential buyer for a car listed on the stock list, the importer orders the vehicle. This is usually done via email or fax and sometimes over the phone. 2.The car exporter in Japan then informs the importer in Sri Lanka of the possible date of shipment and sends a Proforma Invoice on which an L/C is opened by the importer. 3.The exporter then prepares the vehicle/s to be exported.
-Terms of trade agreed upon, invoice and purchase order agreed upon
1. Collect the documents required for importing vehicles. The documents that are required for importing a vehicle include the Commercial Invoice, the Original Cancellation of Registration Certificate, English translation of the Cancellation Certificate, Pre-shipment Inspection Certificate given by the Japan Auto Appraisal Institute (JAAI), Bill of Lading and the insurance policy (obtained from the exporter in Japan). 2.The majority of these documents are sent by the exporter via the exporter’s bank to the importer’s bank as a requirement of the L/C. 3.A Declaration of Value Certificate is obtained from the local dealers of that vehicle. This gives the current market value of the vehicle and is used by the Customs Department to calculate the depreciation value and the relevant taxes. 4. The importer also has to collect the Delivery Order (DO) from the local shipping agent.
1. Importers submit the completed CUSDEC form (hardcopy) with following supporting documents: the Commercial Invoice, Original Cancellation of Registration Certificate, English translation of the Cancellation Certificate, Pre-shipment Inspection Certificate (also called the JAAI Certificate since it is issued by the Japan Auto Appraisal Institute), Declaration of Value Certificate, Declaration of valuation of accessories, the Working Sheet, insurance policy and B/L. 2. The Customs Department keys the information into the electronic system and issues a declaration number. 3. The Assessment Note is then issued, after which the Customs Department verifies the documents and checks against the manifest. 4. If the documentation is correct, the importer (or agent) makes the duty payments to the bank in person. 5. The importer returns to the Customs Department with the receipt and gets the accounts updated. 6. Then the channel is selected. Reconditioned vehicles always go through the yellow channel, while new vehicles go through the green channel or the fast track system.
1. The importer or agent goes to the SLPA and makes the SLPA payment. This is, on average, between LKR 2000 and LKR3000, depending on the size of the vehicle 2. To make the payment, one needs to provide the Delivery Order, B/L and the Cancellation of Registration Certificate as supporting documents 3. An SLPA Payment Receipt is provided in acknowledgement of the payment 4. The importer then requests inspection by an appraiser (at the customs office at the port) by providing the Declaration of Value Certificate and the Declaration of Value of Accessories Certificate 5. The importer then presents the Delivery Order and the CUSDEC to the Passing Office, which verifies the documents and, if required, carries out an inspection 6. The SLPA verifies the payments and documents with the manifest and approves it 7. In the meantime, the agent requests a Gate Pass from the store keeper by providing a copy of the CUSDEC, DO and the B/L 8. Once the Gate Pass is issued and the documents are verified, they are taken to the Key Clerk 9. The keys of the vehicle are collected at this point. The Agent then proceeds to the yard security office, signs a tally report and goes to the yard 10. He gives the keys to the SLPA driver to bring the vehicle to the entrance of the SLPA, after which the importer’s driver take the vehicle(s) to the importer’s premises.